Buying used? Check for liens

[Tornado]

Quote:
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Do you really think that JD is the only tractor manufacturer that would pursue this course of action? Get real.
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Just because JD pursues a certain course of action doesn't make it any less bad if other companies do it as well.

Lemmings?....

David

 

[Inspector507]

I'm sure that almost every tractor that is bought on credit has a clause in the financing paperwork that says they can come get the unit it if YOU do not pay for it in their terms.
JD has not done anything out of the ordinary, any lender would do the same. Their first course of action is to gain control over the item they have a security interest in, no matter where it is.

 

[Tornado]

Inspector507.

I agree that JD could come and get the tractor if I didn't pay for it. In fact, I would invite them to come and get it if I couldn't pay for it. The criminal should be in jail. The innocent party should either receive his funds back or get to keep the tractor.

The contract was between the criminal and JD.

I would love to get my $5,441.82 back from the criminal that sold me goods that I never received (that was half payment up front). I have chased him all over the place. My antenna tower was sold to someone else. I am sure as heck not going to go and find "my tower" and take it from some other poor slob. I WOULD put this guy in jail and leave him there if it were possible.

Having said that, it is MY fault for not making the transaction more secure. It isn't the guy's fault that got my equipment. He payed for it too.
At least he got something for his money. I got nothing. I hate that JD lost money to a criminal. The innocent guy here is not at fault.

A title system for farm equipment might be a good starting place to thwart such crimes. Taking money from an innocent man is a crime in and of itself.

This is my opinion of right and wrong. your mileage may vary.
David

 

[Inspector507]

JD did go about it the legal way though, by putting it in the paperwork and possibly filing a UCC. I feel bad for the guy who bought the tractor, don't get me wrong, but JD has a legal leg (if not 2) to stand on in this case.
They are just exercising their rights afforded to them by law.

 

[jfdlaw]

Guys,

I'm not saying Deere is bad. I like Deere and their equipment. I started this thread to alert other users that they have to be careful buying used. The problem here is a UCC (Uniform Commercial Code) system that is hard for the lay person to use and is subject to abuse. I think most people do not understand they have to search public records to find out if there is a lien, and that no matter how good a search they do, there still may be a lien that could ruin their day.

This matter is a good example. Deere filed their lien in the county where this guy lived when he bought the tractor. The deadbeat gave the buyer another address in another county when he sold it. The original UCC was not discoverable by searching the records for the address he gave the buyer. I guess you need to search whereever the guy used to live.

The message in this is be careful, do your homework and understand the risks. You buy used to save some money, understand that that savings come with some risks.

If it seems to good to be true, it probably is.

 

[Junkman]

The quick and easy way to protect yourself is to contact the manufacturer and give them the serial number of the unit. They will tell you if there is a lien on the unit if they financed it. You could also find the selling dealer and ask them to check their files for any paperwork that might give you the information where to look for a lien. They will not give you any other information, but that alone is sufficient to know that you have to pay both the seller and the financial institution.
I recently purchased a piece of real estate and found that there is a Federal lien on the property by the U.S. Government for back taxes of the seller. The seller said that the taxes were paid in full many years ago, and the government agency that filed the lien has no record of it at this point. The lien is 25 years old and all records are either lost or no longer available. The government stated that it will take a while, but they will be sending a lien release to be recorded. My attorney has told me that the new Government liens expire after a certain time frame and that if the debt isn't paid by then, that they will either file a new lien or they will abandon it as noncollectable. Back when this lien was paid off, a release of lien was sent to the debtor, but he never recorded it. When I paid off my mortgage, I had to record the release of lien. Usually, it is up to the owner of the property to record the release of the lien, because there is a fee involved in most instances and the person holding the lien, doesn't want to pay it.

 

[jfdlaw]

Junkman - I wouldn't solely rely on the dealer. For one reason, they will only know if they were involved with the financing. If the buyer financed it elsewhere they may not know. Secondly you are counting on them keeping their records and accessing them years later. Warranty records can be different from the records for the sale. Thirdly they may not tell you for fear of violating the federal privacy regulations regarding loans. Check with the dealer AND check the county and state records. Try to get the original address of the seller from the dealer so that you can search for a lien record in that county.

 

[zuiko]

It's like if you buy stolen merchandise. You may not have known it was stolen but you are still SOL if the real owner finds it and wants it back. The fault is with the crook not the legitimate owner (JD). What if the tractor was stolen off a dealer's lot? Or from someone's machine shed? It's one of the perils of buying anything used.

A friend of the crook could buy all of his secured posessions for $1 a piece right before he declared bankrupcy. If the creditor was just out of luck since it changed hands that kind of scam would be very commonplace. That's where the fair market value stuff comes in.

 

[herefromthere]

Does anyone have a start point or recommendations on where to start the lien search process in WA state?

If one wanted to purchase a tractor from someone who had an outstanding balance, what is the best way to protect oneself? Would an escrow company be willing to handle the process for a fee? (hopefully less $ than for real estate transactions!) I envision something like the whole waiver or release of lien for subcontracters on a property. If so, would the financing arms of the manufacturers be willing to work with a buyer on this? Any additional thoughts are welcome.

Thanks in advance!

 

[bp fick]

Does anyone have a start point or recommendations on where to start the lien search process in WA state?

If one wanted to purchase a tractor from someone who had an outstanding balance, what is the best way to protect oneself? Would an escrow company be willing to handle the process for a fee? (hopefully less $ than for real estate transactions!) I envision something like the whole waiver or release of lien for subcontracters on a property. If so, would the financing arms of the manufacturers be willing to work with a buyer on this? Any additional thoughts are welcome.

Thanks in advance!

Buying cars, tractors, boats, etc from sellers who have liens doesn't need to be that difficult. If they buyer is financed with Kubota Credit, for example, you simply contact Kubota Credit, with the account # provided you by the seller, clear the lien and you're good to go.

If the tractor is financed through a local bank or credit union, the seller must provide that information and agree for you to contact the bank, or meet you there to clear it.

Thousands and thousands of cars are sold every day with liens that get cleared. Granted, tractors aren't always as straightforward, but should be. If it is a major color, from a major tractor acceptance company, this should not be that difficult. Bank wires move at the speed of light.

Perhaps someone from Washington will give you guidance as to the registry of liens in your area and how to make that contact. OH, and welcome to TBN.